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Home / All / Activewear FAQ / Which Party Is Responsible for Cargo Insurance Under Different Incoterms?
Which Party Is Responsible for Cargo Insurance Under Different Incoterms?
CIF and CIP include seller obligations to arrange cargo insurance, but their standard coverage requirements differ and should be checked against the agreed rule version and contract.
Many other Incoterms do not require either party to obtain insurance, even though shipment risk still transfers at a defined point. Confirm who will insure the cargo, the coverage, insured value, exclusions, and claims process. Do not assume paying freight means the shipment is adequately insured.
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